Mumbai: LG Electronics India Ltd (2004-05 turnover: Rs6,500 crore) and the Maharashtra state government today signed an MoU, for a Rs900-crore expansion to be carried out at by the Korean consumer electronics major at its second Indian manufacturing facility, located at Ranjangaon, near Pune.
The company plans to manufacture the entire range of consumer white goods including colour televisions, air conditioners, refrigerators, washing machines, microwave ovens to colour monitors by the end of 2005.
KR Kim, president LGE South-west Asia and MD, LGEIL, announced that the facility will be the second largest plant in Asia and the first in India to manufacture DVD-writers. Production is due to commence in the second quarter of 2006. The Rs900 crore being invested at the plant includes Rs400 crore for manufacturing DVD writers.
The facility will also have an additional product range; it has already begun manufacturing GSM mobile phones since early this year making it the first mobile phone manufacturer in India. Kim said that the Pune plant, which came up after its facility at Greater NOIDA near New Delhi, will enable the company to expand its consumer reach significantly.
The plant involves an investment of Rs300 crore till 2008 for DVD writers and projects a turn over of Rs2,600 crore by 2008 which. In view its investments in Maharashtra, the state government has granted the Korean company industrial promotion subsidies towards the taxes that it would have to pay the state government.
LG India plans to become the export hub for LG DVD writers catering to the European market. The company aims to touch an export turnover of $40 million by 2008, which will contribute to 10 per cent of LGEIL's turnover.
With an investment allocation of $250 million in the next five years, LGEIL hopes to become a $10-billion company by 2010.